Screening prospective quality tenants is never a desirable thing to do. Very few people like digging into the private lives of others. However, as a landlord it is very important that you find quality tenants who will not damage your property.
Rental tenant screening has three steps. Each of which should be followed in order to get the best results from your rental property. It will be difficult to imagine you in a vacation home if you are spending all your money fixing damages in your rental properties.
Here is the most effective 3 step process to screening prospective quality tenants:
Step One: Income Verification
Your tenants have to be able to pay their rent. The minimum ratio your tenants should have is a 3:1 ratio between net income and rent on the lease. If a tenant doesn’t have this ratio it will be very difficult for them to pay rent should unexpected expenses occur.
As a landlord, you have to care about potential pitfalls which may happen in the lives of your residents. Income verification is a good way to help make sure unexpected expenses aren’t going to leave your residents unable to pay.
Step Two: Obtaining a background check
Backgrounds checks are essential because you have to know the likelihood of criminal activity happening on your property.
If people do have criminal records; however, do not just outright refuse them. If you can get an extra deposit from them, it will show that they have the discipline to save enough for a six-month deposit. This takes a certain level of character. Therefore, screening prospective tenants is the best way to protect yourself in case, policemen come to investigate a crime on your property.
Step Three: Looking at an eviction history for your prospective quality tenants.
Step three is you should have very little leniency with evictions.
If someone has been evicted it means they did something which has either broken the contractual agreement or severely damaged the property. Either way, it is usually not a chance worth taking, even if you are extremely desperate to get a renter. Your screening process has to mean something and this is the firmest point in which to take a stand.
Hopefully, this chapter has helped you have some ease in regards to rental tenant screening.
This is essential to your success as a landlord and if you have the appropriate steps listed clearly for incoming tenants there will be no surprises. As long as there are no surprises, both renters and landlords can come to a happy arrangement.
Lack of proper rental tenant screening process may result in unpredictable headaches due to the incompatibility of costs and lifestyle.